Public Utilities Commission technical and clarification changes to statues

A bill for an act

relating to energy; making technical and clarifying changes to statutes related to

the Public Utilities Commission; amending Minnesota Statutes 2024, sections

216.13; 216.16; 216.161; 216.17, subdivision 3; 216A.01; 216A.03, subdivisions

1, 6; 216A.05, subdivision 2; 216B.027, subdivision 7; 216B.06; 216B.098,

subdivision 2; 216B.16, subdivision 19; 216B.1611, subdivision 3a; 216B.2412,

by adding a subdivision; 216B.2422, subdivision 3; 216B.27, subdivisions 1, 2,

3, 4, 5; 216B.43; 216B.62, subdivision 3a; repealing Minnesota Statutes 2024,

sections 216B.1681; 216B.1695; 216B.2412, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 216.13, is amended to read:

216.13 COMMENCING PROCEEDINGS BEFORE COMMISSION.

Proceedings before the commission
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against any such carrier or public warehouse operator
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shall be instituted by
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a
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complaint
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, verified as a pleading in a civil action, stating
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or petition

that states
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in ordinary language the facts constituting the alleged omission or offense
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or

action requested. The filer must provide notice to the affected utilities
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.
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The parties to such

proceedings shall be termed, respectively, "complainant" and "respondent."
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Sec. 2.

Minnesota Statutes 2024, section 216.16, is amended to read:

216.16 HEARINGS BEFORE COMMISSION.

If the
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matter be
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complaint or petition is
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not adjusted to the satisfaction of the commission,
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it
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the commission
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shall set a time and place of hearing, and give at least ten days' notice

thereof to each party. The parties may appear either in person or by attorney. The commission

shall hear evidence and otherwise investigate the matter, make findings of fact upon all

matters involved, and such order or recommendation
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in the premises
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as may be just. A copy

of such findings and order or recommendation shall forthwith be served upon each party.

No proceedings shall be dismissed on account of want of pecuniary interest in the complaint.

Sec. 3.

Minnesota Statutes 2024, section 216.161, is amended to read:

216.161 CONTESTED CASES; NOTICE.

Notwithstanding the provisions of any other law the commission in any contested case

shall give reasonable notice to representatives of associations or other interested groups or

persons who have registered their names with the
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executive
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secretary of the commission

for that purpose, to all parties and to cities and municipalities which the commission deems

to be interested in the proceeding. The commission may prescribe an annual fee to be paid

into the state treasury which shall be a charge to all registered groups or persons. This charge

is to cover the costs involved.

"Contested case"
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means a proceeding before the commission in which the legal rights,

duties or privileges of specific parties are required by law or constitutional right to be

determined after a hearing
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has the meaning given in section 14.02, subdivision 3
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.

Sec. 4.

Minnesota Statutes 2024, section 216.17, subdivision 3, is amended to read:

Subd. 3.

Filings with commission; manner of filing.

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As of January 1, 2008,
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Any

telephone company or telecommunications carrier subject to chapter 237; any public utility,

cooperative association, or municipal utility subject to chapter 216B; and state agencies,

shall file documents with the commission via the commission's electronic filing system.

The executive secretary may approve an exemption from this requirement if an affected

company or agency is unable to submit filings via the commission's electronic filing system.

All parties, participants, or other interested persons shall submit filings to the commission

via the commission's electronic filing system whenever practicable, but may also file by

personal delivery or by mail.

Sec. 5.

Minnesota Statutes 2024, section 216A.01, is amended to read:

216A.01 DEPARTMENT AND COMMISSION; POWERS AND DUTIES.

The Department of Commerce shall have and possess all of the rights and powers and

perform all of the duties vested in it by this chapter. The Public Utilities Commission shall

have and possess all of the rights and powers and perform all of the duties vested in it by
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this chapter and those formerly vested by law in the Railroad and Warehouse Commission
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chapters 216, 216A, 216B, 216C, 216G, 216H, 216I, and 237
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.

Sec. 6.

Minnesota Statutes 2024, section 216A.03, subdivision 1, is amended to read:

Subdivision 1.

Members.

The Public Utilities Commission shall consist of five members.

The terms of members shall be six years and until their successors have been appointed and

qualified. Each commissioner shall be appointed by the governor by and with the advice

and consent of the senate. Not more than three commissioners shall belong to the same

political party. At least one commissioner must have been domiciled at the time of

appointment outside the seven-county metropolitan area.
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If the membership of the

commission after July 31, 1986, does not consist of at least one member domiciled at the

time of appointment outside the seven-county metropolitan area, the membership shall

conform to this requirement following normal attrition of the present commissioners.
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The

governor when selecting commissioners shall give consideration to persons learned in the

law or persons who have engaged in the profession of engineering, public accounting,

property and utility valuation, finance, physical or natural sciences, production agriculture,

or natural resources as well as being representative of the general public.

For purposes of this subdivision, "seven-county metropolitan area" means Anoka, Carver,

Dakota, Hennepin, Ramsey, Scott, and Washington Counties.

Sec. 7.

Minnesota Statutes 2024, section 216A.03, subdivision 6, is amended to read:

Subd. 6.

Record of proceedings.

An audio
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magnetic or audio electronic
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or video
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recording device shall be used to keep a record of all proceedings before the commission.

Sec. 8.

Minnesota Statutes 2024, section 216A.05, subdivision 2, is amended to read:

Subd. 2.

Powers generally.

The commission shall, to the extent prescribed by law:

(1) investigate the management of
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all warehouse operators and telegraph companies
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entities within its jurisdiction
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, the manner in which their businesses are conducted and the

adequacies of the services which they are affording to the public, and make all appropriate

orders relating to the continuation, termination, or modification of all services and facilities
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with a view to properly promoting
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necessary to ensure
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the security and convenience of the

public;

(2) review and ascertain the reasonableness of tariffs of rates, fares, and charges, or any

part or classification thereof, and prescribe the form and manner of filing, posting, and

publication thereof;

(3) prescribe uniform systems of keeping and rendering accounts and the time within

which such systems shall be adopted;

(4) order the issuance of franchises, permits or certificates of
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convenience and necessity
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need
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.

Sec. 9.

Minnesota Statutes 2024, section 216B.027, subdivision 7, is amended to read:

Subd. 7.

Optional referendum.

No cooperative shall be bound by the provisions of this

section unless adoption has been approved at referendum using the petition and election

procedures in section
216B.026
.
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Within 60 days of May 19, 1983, the board of directors of

each cooperative electric association shall notify the stockholders of the provisions of this

section and shall explain the process for ratification by petition and election as provided in

this subdivision.
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Sec. 10.

Minnesota Statutes 2024, section 216B.06, is amended to read:

216B.06 RECEIVING DIFFERENT COMPENSATION.

No public utility shall directly or indirectly, by any device whatsoever, or in any manner,

charge, demand, collect, or receive from any person a greater or less compensation for any

service rendered or to be rendered by the utility than that prescribed in the schedules of

rates of the public utility applicable thereto when filed in the manner provided in Laws

1974, chapter 429, nor shall any person knowingly receive or accept any service from a

public utility for a compensation greater or less than that prescribed in the schedules
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, provided

that all rates being charged and collected by a public utility upon January 1, 1975, may be

continued until schedules are filed
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.

Sec. 11.

Minnesota Statutes 2024, section 216B.098, subdivision 2, is amended to read:

Subd. 2.

Budget billing plans.

A utility shall offer a customer a budget billing plan for

payment of charges for service, including adequate notice to customers prior to changing

budget payment amounts. Municipal utilities having 3,000 or fewer customers are exempt

from this requirement.
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Municipal utilities having more than 3,000 customers shall implement

this requirement before July 1, 2003.
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Sec. 12.

Minnesota Statutes 2024, section 216B.16, subdivision 19, is amended to read:

Subd. 19.

Multiyear rate plan.

(a) A public utility may propose, and the commission

may approve, approve as modified, or reject, a multiyear rate plan as provided in this

subdivision. The term "multiyear rate plan" refers to a plan establishing the rates the utility

may charge for each year of the specified period of years, which cannot exceed five years,

to be covered by the plan. A utility proposing a multiyear rate plan shall provide a general

description of the utility's major planned investments over the plan period. The commission

may also require the utility to provide a set of reasonable performance measures and

incentives that are quantifiable, verifiable, and consistent with state energy policies. The

commission may allow the utility to adjust recovery of its cost of capital or other costs in

a reasonable manner within the plan period. The utility may propose:

(1) recovery of the utility's forecasted rate base, based on a formula, a budget forecast,

or a fixed escalation rate, individually or in combination. The forecasted rate base must

include the utility's planned capital investments and investment-related costs, including

income tax impacts, depreciation, and property taxes, as well as forecasted capacity-related

costs from purchased power agreements that are not recovered through subdivision 7;

(2) recovery of operations and maintenance expenses, based on an electricity-related

price index or other formula;

(3) tariffs that expand the products and services available to customers, including, but

not limited to, an affordability rate for low-income residential customers; and

(4) adjustments to the rates approved under the multiyear plan for rate changes that the

commission determines to be just and reasonable, including, but not limited to, changes in

the utility's cost of operating its nuclear facilities, or other significant investments not

addressed in the plan.

(b) A utility that has filed a petition with the commission to approve a multiyear rate

plan may request to be allowed to implement interim rates for the first and second years of

the multiyear plan. If the commission approves the request, interim rates shall be implemented

in the same manner as allowed under subdivision 3.

(c) The commission may approve a multiyear rate plan only if it finds that the plan

establishes just and reasonable rates for the utility, applying the factors described in

subdivision 6. Consistent with subdivision 4, the burden of proof to demonstrate that the

multiyear rate plan is just and reasonable is on the public utility proposing the plan.

(d) Rates charged under the multiyear rate plan must be based only upon the utility's

reasonable and prudent costs of service over the term of the plan, as determined by the

commission, provided that the costs are not being recovered elsewhere in rates. Rate

adjustments authorized under subdivisions 6b and 7 may continue outside of a plan authorized

under this subdivision.

(e) The commission may, by order, establish terms, conditions, and procedures for a

multiyear rate plan necessary to implement this section and ensure that rates remain just

and reasonable during the course of the plan, including terms and procedures for rate

adjustment. At any time prior to conclusion of a multiyear rate plan, the commission, upon

its own motion or upon petition of any party, has the discretion to examine the reasonableness

of the utility's rates under the plan, and adjust rates as necessary.

(f) In reviewing a multiyear rate plan proposed in a general rate case under this section,

the commission may extend the time requirements for issuance of a final determination

prescribed in this section by an additional 90 days beyond its existing authority under

subdivision 2, paragraph (f).

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(g) A utility may not file a multiyear rate plan that would establish rates under the terms

of the plan until after May 31, 2012.

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(h)
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(g)
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The commission may initiate a proceeding to determine a set of performance

measures that can be used to assess a utility operating under a multiyear rate plan.

Sec. 13.

Minnesota Statutes 2024, section 216B.1611, subdivision 3a, is amended to read:

Subd. 3a.

Project information.

(a)
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Beginning July 1, 2014,
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Each electric utility shall

request an applicant for interconnection of distributed renewable energy generation to

provide the following information, in a format prescribed by the commissioner:

(1) the nameplate capacity of the facility in the application;

(2) the preincentive installed cost and cost components of the generation system at the

facility;

(3) the energy source of the facility; and

(4) the zip code in which the facility is to be located.

(b) The commissioner shall develop or identify a system to collect and process the

information under this subdivision for each utility, and make non-project-specific data

available to the public on a periodic basis as determined by the commissioner, and in a

format determined by the commissioner. The commissioner may solicit proposals from

outside parties to develop the system. The commissioner may only collect data authorized

in paragraph (a), and may not require submission of any additional data that could be used

to personally identify any individual applicant or utility customer.

(c) Electric utilities collecting and transferring data under this subdivision are not

responsible for the accuracy, completeness, or quality of the information under this

subdivision.

(d) Except as provided in paragraph (b), any information provided by an applicant to

the commissioner under this subdivision is nonpublic data as defined in section
13.02
,

subdivision 9.

Sec. 14.

Minnesota Statutes 2024, section 216B.2412, is amended by adding a subdivision

to read:

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Subd. 4.

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Decoupling plans.

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A public utility may file a decoupling plan. The commission

may approve, deny, or modify the decoupling plan consistent with the public interest.

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Sec. 15.

Minnesota Statutes 2024, section 216B.2422, subdivision 3, is amended to read:

Subd. 3.

Environmental costs.

(a) The commission shall, to the extent practicable,

quantify and establish a range of environmental costs associated with each method of

electricity generation. A utility shall use the values established by the commission in

conjunction with other external factors, including socioeconomic costs, when evaluating

and selecting resource options in all proceedings before the commission, including resource

plan and certificate of need proceedings.

(b) The commission shall provisionally adopt and apply the draft cost of greenhouse gas

emissions valuations presented in the United States Environmental Protection Agency's

EPA External Review Draft of Report on the Social Cost of Greenhouse Gases: Estimates

Incorporating Recent Scientific Advances, released in September 2022, including the time

horizon, global estimates of damages, and the full range of discount rates from 2.5 to 1.5

percent, with two percent as the central estimate. The commission shall adopt the estimates

contained in the final version of the external review draft report when it becomes available.

(c) If, at any time, the estimates adopted by the commission under paragraph (a) are

exceeded by estimates released by the federal Interagency Working Group on the Social

Cost of Greenhouse Gases or its successors, the commission shall adopt the working group

estimates.

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(d) The commission shall establish interim environmental cost values associated with

each method of electricity generation by March 1, 1994. These values expire on the date

the commission establishes environmental cost values under paragraph (a).

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Sec. 16.

Minnesota Statutes 2024, section 216B.27, subdivision 1, is amended to read:

Subdivision 1.

Applying for rehearing
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or reconsideration
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.

Within 20 days after the

service by the commission of any decision constituting an order or determination, any party

to the proceeding and any other person, aggrieved by the decision and directly affected

thereby, may apply to the commission for a rehearing
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or reconsideration
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in respect to any

matters determined in the decision. The commission may grant and hold a rehearing
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or

reconsideration
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on the matters, or upon any of them as it may specify in the order granting

the rehearing
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or reconsideration
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, if in its judgment sufficient reason therefor exists.

Sec. 17.

Minnesota Statutes 2024, section 216B.27, subdivision 2, is amended to read:

Subd. 2.

Contents of application; condition precedent for review.

The application

for a rehearing
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or reconsideration
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shall set forth specifically the grounds on which the

applicant contends the decision is unlawful or unreasonable. No cause of action arising out

of any decision constituting an order or determination of the commission or any proceeding

for the judicial review thereof shall accrue in any court to any person or corporation unless

the plaintiff or petitioner in the action or proceeding within 20 days after the service of the

decision, shall have made application to the commission for a rehearing
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or reconsideration
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in the proceeding in which the decision was made. No person or corporation shall in any

court urge or rely on any ground not so set forth in the application for rehearing
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or

reconsideration
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.

Sec. 18.

Minnesota Statutes 2024, section 216B.27, subdivision 3, is amended to read:

Subd. 3.

Rules; procedural requirements; commission's authority.

Applications for

rehearing
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or reconsideration
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shall be governed by general rules which the commission may

establish. In case a rehearing
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or reconsideration
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is granted the proceedings shall conform

as nearly as may be to the proceedings in an original hearing, except as the commission

may otherwise direct. If in the commission's judgment, after the rehearing
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or reconsideration
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,

it shall appear that the original decision, order, or determination is in any respect unlawful

or unreasonable, the commission may reverse, change, modify, or suspend the original

action accordingly. Any decision, order, or determination made after the rehearing
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or

reconsideration
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reversing, changing, modifying, or suspending the original determination

shall have the same force and effect as an original decision, order, or determination. Only

one rehearing
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or reconsideration
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shall be granted by the commission; but this shall not be

construed to prevent any party from filing a new application or complaint. No order of the

commission shall become effective while an application for a rehearing
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or reconsideration,
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or a rehearing
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or reconsideration proceeding,
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is pending and until ten days after the

application for a rehearing
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or reconsideration
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is either denied, expressly or by implication,

or the commission has announced its final determination on rehearing
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or reconsideration
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.

Sec. 19.

Minnesota Statutes 2024, section 216B.27, subdivision 4, is amended to read:

Subd. 4.

Deadline to grant application.

Any application for a rehearing
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or

reconsideration
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not granted within 60 days from the date of filing thereof, shall be deemed

denied.

Sec. 20.

Minnesota Statutes 2024, section 216B.27, subdivision 5, is amended to read:

Subd. 5.

Effect of decision on application.

It is hereby declared that the legislative

powers of the state, insofar as they are involved in the issuance of orders and decisions by

the commission, have not been completely exercised until the commission has acted upon

an application for rehearing
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or reconsideration
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, as provided for by this section and by the

rules of the commission, or until the application for rehearing
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or reconsideration
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has been

denied by implication, as above provided for.

Sec. 21.

Minnesota Statutes 2024, section 216B.43, is amended to read:

216B.43 HEARING ON COMPLAINT.

Upon the filing of an application under section
216B.42
or upon complaint by an affected

utility that the provisions of sections
216B.39
to
216B.42
have been violated, the commission

shall hold a hearing, upon notice, within
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30
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60
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days after the filing of the complaint, and

shall render its decision within 30 days after the hearing.

Sec. 22.

Minnesota Statutes 2024, section 216B.62, subdivision 3a, is amended to read:

Subd. 3a.

Supplemental staffing assessment.

In addition to other assessments in

subdivision 3, the commission may assess up to $800,000 per year for supplemental staffing

to implement requirements of this chapter. The amount in this subdivision shall be assessed

to the several public utilities in proportion to their respective gross operating revenues from

retail sales of gas or electric service within the state during the last calendar year and shall

be deposited into an account in the special revenue fund
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and appropriated to the commission
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.

An assessment made under this subdivision is not subject to the cap on assessments provided

in subdivision 3 or any other law.

Sec. 23.
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REPEALER.
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Minnesota Statutes 2024, sections 216B.1681; 216B.1695; and 216B.2412, subdivision

3,

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are repealed.

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APPENDIX

Repealed Minnesota Statutes: 26-07709

216B.1681 CURTAILMENT PAYMENTS.

The commission shall conduct a study of curtailment payments for wind energy projects to assess whether utilities are unduly discriminating among project ownership structures in regard to the contractual availability of curtailment payments. The commission shall submit the study to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy by January 15, 2008.

216B.1695 ENVIRONMENTAL PROJECTS; ADVANCE DETERMINATION OF PRUDENCE.

Subdivision 1.

Qualifying project.

A public utility may petition the commission for an advance determination of prudence for a project undertaken to comply with federal or state air quality standards of states in which the utility's electric generation facilities are located, if the project has an expected jurisdictional cost to Minnesota ratepayers of at least $10,000,000. A project is undertaken to comply with federal or state air quality standards if it is required:

(1) by the state in which the generation facility is located in a state implementation plan, permit, or order; or

(2) to comply with section 111 or 112 of the federal Clean Air Act, United States Code, title 42, section 7411 or 7412.

Subd. 2.

Regulatory cost assessments and reports.

(a) A utility requesting an advance determination under subdivision 1 must, as part of the evidence required when filing a petition under subdivision 3, provide to the Public Utilities Commission and the Pollution Control Agency an assessment of all anticipated state and federal environmental regulations related to the production of electricity from the utility's facility subject to the filing, including regulations relating to:

(1) air pollution by nitrogen oxide and sulphur dioxide, including an assumption that Minnesota will be included in the federal Clean Air Interstate Rule region, hazardous air pollutants, carbon dioxide, particulates, and ozone;

(2) coal waste; and

(3) water consumption and water pollution.

(b) In addition, the utility shall provide an assessment of the financial and operational impacts of these pending regulations applicable to the generating facility that is the subject of the filing and provide a range of regulatory response scenarios that include, but are not limited to:

(1) the installation of pollution control equipment;

(2) the benefits of the retirement or repowering of the plant that is the subject of the filing with cleaner fuels considering the costs of complying with state and federal environmental regulations; and

(3) the use of pollution allowances to achieve compliance.

(c) The utility shall consult with interested stakeholders in establishing the scope of the regulatory, financial, and operational assessments prior to or during the 60-day period of the notice under subdivision 4.

Subd. 3.

Petition.

A petition filed under this section must include a description of the project, evidence supporting the project's reasonableness, a discussion of project alternatives, a project implementation schedule, a cost estimate and support for the reasonableness of the estimated cost, and a description of the public utility's efforts to ensure the lowest reasonable costs. Following receipt of the Pollution Control Agency's verification under subdivision 4, the commission shall allow opportunity for oral and written comment on the petition. The commission shall make a final determination on the petition within ten months of its filing date. The commission must make findings in support of its determination.

Subd. 4.

Verification.

At least 60 days prior to filing a petition to the commission under subdivision 3, the utility shall file notice with the Pollution Control Agency that describes the project and how it qualifies under subdivision 1. The Pollution Control Agency shall, within 60 days of receipt of the notice, verify that the project qualifies under subdivision 1, and shall forward written verification to the commission.

Subd. 5.

Cost recovery.

The utility may begin recovery of costs that have been incurred by the utility in connection with implementation of the project in the next rate case following an advance determination of prudence or in a rider approved under section
216B.1692
. The commission shall review the costs incurred by the utility for the project. The utility must show that the project costs are reasonable and necessary, and demonstrate its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's prior determination of prudence, it may accept, modify, or reject any of the project costs. The commission may determine whether to require an allowance for funds used during construction offset.

Subd. 5a.

Rate of return.

The return on investment in the rider shall be at the level approved by the commission in the public utility's last general rate case, unless the commission determines that a different rate of return is in the public interest.

Subd. 6.

Expiration.

A petition for an advance determination of prudence may not be filed after December 31, 2015.

216B.2412 DECOUPLING OF ENERGY SALES FROM REVENUES.

Subd. 3.

Pilot programs.

The commission shall allow one or more rate-regulated utilities to participate in a pilot program to assess the merits of a rate-decoupling strategy to promote energy efficiency and conservation. Each pilot program must utilize the criteria and standards established in subdivision 2 and be designed to determine whether a rate-decoupling strategy achieves energy savings. On or before a date established by the commission, the commission shall require electric and gas utilities that intend to implement a decoupling program to file a decoupling pilot plan, which shall be approved or approved as modified by the commission. A pilot program may not exceed three years in length. Any extension beyond three years can only be approved in a general rate case, unless that decoupling program was previously approved as part of a general rate case.